Stock exchanges brace for volatile trading day

Expecting an extremely volatile day of trading, the New York Stock Exchange instituted its Rule 48 on Tuesday morning. But a rough start mitigated toward the end of the trading day.

The rule allows an exchange officer to temporarily suspend and reopen trading, which in turn removes a requirement for designated market makers “to disseminate price indications before the bell, making it easier and faster to open stocks.”

The NYSE made the move on Tuesday after seeing steep declines in European markets. The NYSE last used the rule several times during the second week of August, when the Dow had four straight days of 400-point swings.

Despite the move, the Dow Jones Industrial Average dropped nearly 300 points at the opening. The Nasdaq was down about 60 points, and the S&P 500 fell about 30 points as of 10 a.m. Tuesday.

The Dow closed down almost 101 points, the Nasdaq down 6.5 and the S&P down 8.73.